Bioelectronics Corp (OTCMKTS:BIEL) Takes Another Step Back

[[tagnumber 0]][[tagnumber 1]]The stock of Bioelectronics Corp (OTCMKTS:BIEL) has been highly illiquid for most of this year and barely made any big percentile movements. That was until this month came around. We saw some impressive upward movements earlier this month, which managed to push the ticker out of triple zero land in a matter of two sessions.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]After the impressive jumps that [[tagnumber 6]]BIEL[[tagnumber 7]] recorded we saw a promotional email that listed no compensation, touting the company stock. We are quite certain that the promoters moved on their own in order to clear a past record or give credibility to future claims. Unfortunately, things turned for the worse and [[tagnumber 6]]BIEL[[tagnumber 7]] came crashing down the charts.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]This is not surprising at all. Despite the fact that we have seen some optimistic press releases coming from the company lately we can’t go past the fundamentals. Let us give you a quick reminder of what [[tagnumber 6]]BIEL[[tagnumber 7]] had to show at the end of the second quarter of the year.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 19]] [[tagnumber 20]]cash: $29 thousand[[tagnumber 21]] [[tagnumber 20]]current assets: $668 thousand[[tagnumber 21]] [[tagnumber 20]]current liabilities: $5.46 million[[tagnumber 21]] [[tagnumber 20]]revenues: $675 thousand[[tagnumber 21]] [[tagnumber 20]]net loss: $732 thousand[[tagnumber 21]] [[tagnumber 30]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]On the good side, the revenues that the company is generating are decent. The cash positions, however, look quite insufficient to fund future operations and [[tagnumber 6]]BIEL[[tagnumber 7]] has already gone through a lot of dilution and has accumulated a significant amount of toxic debt.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]The company has an outstanding share count of a little over 7 BILLION, with 1.6 BILLION of those share printed in 2015. Most of the shares have seen the light of day as conversion of toxic debt owed to family members of the company’s CEO and President, Mr. Andrew A. Whelan.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]Meanwhile, we see that a total of $4.29 million of the $5.46 million in current liabilities are in the form of related part notes payable, current portion. We may only guess what discounts those notes hold and who are the note–holders. This only suggests that we may see further dilution. The threat becomes even more real when you realize the fact that the current authorized share count has risen to about 11 BILLION.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]]In light of all this, it’s not that surprising that [[tagnumber 6]]BIEL[[tagnumber 7]] fell 9.09% yesterday, after two sessions of closing in the green. As the ticker was going for a close at $0.001 we saw a total of 77.11 million traded shares generate $72 thousand in daily dollar volume.[[tagnumber 2]] [[tagnumber 0]] [[tagnumber 2]] [[tagnumber 0]][[tagnumber 6]]BIEL[[tagnumber 7]] looks somewhat stable in the beginning of today’s session. That, however, doesn’t mean that it won’t cross into triple zero territory once again. As always, doing your due diligence and weighing out the risks before putting any money on the line is absolutely crucial.[[tagnumber 2]]